Katy, a 54 year old widow, lost her husband in 2020. He was an active participant in the Federal Employee Retirement system (FERS), and his FERS contributions totaled 24,000 at the time of his death. Katy is entitled to receive a survivor annunity. She is also entitled to receive a special FERS benefit of 11,000, which she elected to receive in a lump sum in 2020. How much of the lump sum death payment taxable? 0, 5,500, 8,000 or 11,000.